An axisymmetric Meshless Local Petrov-Galerkin (MLPG) algorithm is presented for the potential and elasticity problems. In this algorithm the trial and test functions are chosen from different spaces. By a judicious choice of these functions, the integrals involved in the weak form can be restricted to a local neighborhood. This makes the method truly meshless. The MLPG algorithm is used to study various potential and elasticity problems for which exact solutions are available. The sensitivity and effectiveness of the MLPG algorithm to various parameters such as the weight functions, basis functions and support domain radius, etc. was studied. The MLPG algorithm yielded accurate solutions for all weight functions, basis functions and support domain radii considered for all of the problems studied.